2. Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Measurements Tables

Assumptions related to the Series C Common Stock Warrants

The key quantitative assumptions related to the Series C Common Stock Warrants, issued March 3, 2011 and expiring March 3, 2016, are as follows:

	December 31, 2013	December 31, 2012
Expected Life (Years)	2.2	3.2
Risk Free Rate	0.45%	0.39%
Volatility	29.31%	30.46%
Probability of a Capital Raise	4-8%	8-80%

Financial assets and liabilities measured at fair value on a recurring basis

	December 31, 2013
	Fair Value		Level 1	Level 2		Level 3
Derivative Liability – Common Stock Purchase Warrants:
Debentures	$	10,207		$	10,207
Series B Preferred Stock		24,277			24,277
Promissory Notes		85,824			85,824
Series D Preferred Stock		224,075			224,075
Series C Preferred Stock		382,610					382,610
Total	$	726,993		$	344,383	$	382,610
	December 31, 2012
	Fair Value		Level 1	Level 2		Level 3
Derivative Liability – Common Stock Purchase Warrants:
Debentures	$	85,350		$	85,350
Series B Preferred Stock		170,383			170,383
Promissory Notes		230,985			230,985
Series D Preferred Stock		496,840			496,840
Series C Preferred Stock		1,491,601					1,491,601
Total	$	2,475,159		$	983,558	$	1,491,601

Summary of the changes in fair value of financial assets and liabilities

	Fair Value Measurements Using
	Level 2 Inputs															Level 3 Inputs
	Derivative liability - Common Stock Purchase Warrants - Debentures			Derivative liability - Common Stock Purchase Warrants – Series B Preferred Stock			Derivative liability - Common Stock Purchase Warrants – Promissory Notes			Derivative liability - Common Stock Purchase Warrants – Series D Preferred Stock			Total Fair Value Measurements Using Level 2 Inputs			Derivative liability - Common Stock Purchase Warrants – Series C Preferred Stock			Grand Total Fair Value Measurements Using Both Level 2 and Level 3 Inputs
Balance December 31, 2011	$	26,200		$	67,666		$	-		$	-		$	93,866		$	869,261		$	963,127
Total unrealized (gains) or losses included in net income  or (loss)		59,150			102,717			110,305			-			272,172			622,340			894,512
Issuance of Convertible Promissory Notes Common Stock Purchase Warrants		--			--			120,680			--			120,680			--			120,680
Issuance of Series D Preferred Common Stock Purchase Warrants		--			--			--			496,840			496,840			--			496,840
Balance December 31, 2012	$	85,350		$	170,383		$	230,985		$	496,840		$	983,558		$	1,491,601		$	2,475,159
Total unrealized (gains) or losses included in net income  or (loss)		(75,143	)		(146,106	)		(145,161	)		(674,550	)		(1,040,960	)		(1,108,991	)		(2,149,951	)
Issuance of Series D Preferred Common Stock Purchase Warrants		--			--			--			401,785			401,785			--			401,785
Balance December 31, 2013	$	10,207		$	24,277		$	85,824		$	224,075		$	344,383		$	382,610		$	726,993